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BukuKas raises $10 million led by Sequoia Capital India to build a “end-to-end software stack” for Indonesian SMEs

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The backbone of Indonesia’s economy are small- to medium-sized businesses, which account for 60% of its gross domestic product. Many still rely on manual bookkeeping, but the impact of COVID-19 has driven small businesses to digitize more of their operations. BukuKas, one of several startups helping SMEs go online, announced today it has raised a $10 million Series A led by Sequoia Capital India.

BukuKas launched in December 2019 as a digital bookkeeping app, but is growing its range of services with the goal of creating an “end-to-end software stack” for small businesses. Eventually, it wants to launch a SME-focused digital bank.

The funding, which brings BukuKas’ total raised so far to $22 million, included participation from returning investors Saison Capital, January Capital, Founderbank Capital, Cambium Grove, Endeavor Catalyst and Amrish Rau.

As of November 2020, BukuKas had a registered user base of 3.5 million small merchants and retailers, and had crossed 1.8 million monthly active users. During that month, the platform also recorded $17.4 billion worth of transactions on an annualized basis, a figure corresponding to more than 1.5% of Indonesia’s $1.04 trillion GDP.

BukuKas was founded by chief executive officer Krishnan Menon and chief operating officer Lorenzo Peracchione, who met eight years ago while working at Lazada Indonesia.

Menon’s previous startup was Fabelio, an Indonesian online home furnishings store. Every two months, he would visit smaller small cities in Indonesia, like Jepara and Cirebon, to source furniture.

“One of the things that stood out was how different the Jakarta bubble is from the rest of Indonesia, all the way from the penetration of software to financial services,” he told TechCrunch. While talking to merchants and suppliers, Menon realized that “no one is building products with them as the center of the universe,” despite the fact that there are 56 million small businesses.

Peracchione said he and Mebon had been brainstorming startup ideas for a while. “When he told me about the idea of solving cash flow visibility to SMEs, it immediately struck me,” Peracchione said. “My dad used to be a SME owner himself and during my childhood I experience first hand the struggles and ups and downs connected to running a small business.”

The two decided to start with digital bookkeeping after speaking to 1,052 merchants because helping them keep track of their business performance would generate data that would in turn enable access to more financial services.

“Our vision expanded into providing an end-to-end software stack to digitize SMEs and help them across a wide range of activities as a prequel to building an SME-focused digital bank down the line,” Menon said.

In addition to digital ledger features, BukuKas also sends payment reminders to buyers through WhatsApp and automatically generates invoices, includes an an inventory management module and analyzes expenses to help businesses understand what is impacting their profit. The company plans to add digital payments this month. During the rest of 2021, it will also introduce more features to help businesses sell online, including tools for online store fronts, a promotions engine and social sharing.

“With COVID-19, SMEs are rushing to get digitized, but they lack the right mobile-first tools to sell online as well as to manage their business,” said Menon.

The app focuses on smaller Indonesian cities and towns, since about 73% of the merchants who use BukuKas are located outside of tier 1 cities like Jakarta. Its users represent wide range of sectors, including retailers, food vendors, grocery markets, mobile and phone credit providers, social commerce sellers, wholesalers and service providers. BukuKas acquired digital ledger app Catatan Keuangan Harian, which has 300,000 monthly active users, in September 2020 to expand its market share in Indonesia.

With its large number of SMEs, Indonesia is seen as a desirable market for companies helping the drive toward digitization. For example, India’s Khatabook, which was valued between $275 million to $300 million after its last round of funding in May 2020, recently launched BukuUang in Indonesia. Other startups in the same space include Y Combinator-backed BukuWarung, Moka and Jurnal, all of which offer tools to help SMEs bring more of their operations online.

Menon said BukuKas’ advantage is its team’s experience building businesses in Indonesia over the past seven years. For example, it launched a “Know Your Profits” module based on user feedback. It also offers a self-guided onboarding process, a simple user interface and an offline mode for users in areas with poor network connections.

“In general, individual features can be copied but we believe our ‘integrated end-to-end software stack approach,’ coupled with our obsessive focus on simplicity, deep understanding of our users and a superior level of service will be key in differentiating BukuKas from competing offerings,” he added.

BukuKas’ Series A will be used on user acquisition, its engineering and product teams in Jakarta and Bangalore and to introduce new services for merchants. The company may eventually expand into other Southeast Asia markets, but “in the short term consolidating and further expanding our leadership in the SME space in Indonesia is our top priority,” said Menon.

 

Lyron Foster is a Hawaii based African American Musician, Author, Actor, Blogger, Filmmaker, Philanthropist and Multinational Serial Tech Entrepreneur.

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Will this time be any different for Twitter?

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As Twitter seems to buy its way into competing with Clubhouse and Substack, one wonders whether the beleaguered social media company is finally ready to move past its truly awful track record of seizing opportunities.

Twitter’s pace of product ambition has certainly seemed to speed in the past several months, conveniently following shareholder action to oust CEO Jack Dorsey last year. They’ve finally rolled out their Stories product Fleets, they’ve embraced audio both in the traditional feed and with their beta Spaces feature, and they’ve taken some much-publicized steps to reign in disinformation and content moderation woes (though there’s still plenty to be done there).

In the past few weeks, Twitter has also made some particularly interesting acquisitions. Today, it was announced that they were buying Revue, a newsletter management startup. Earlier this month, they bought Breaker, a podcasting service. Last month, they bought Squad, a social screen-sharing app.

It’s an aggressive turn that follows Twitter’s announcement that it will be shutting down Periscope, a live video app that was purchased and long-neglected by Twitter despite the fact that the company’s current product chief was its founder.

TikTok’s wild 2020 success in fully realizing the broader vision for Vine, which Twitter shut down in 2017, seems to be a particularly embarrassing stain on the company’s history; it’s also the most crystallized example of Twitter shooting itself in the foot as a result of not embracing risk. And while Twitter was ahead of that curve and simply didn’t make it happen, Substack and Clubhouse are two prime examples of competitors which Twitter could have prevented from reaching their current stature if it had just been more aggressive in recognizing adjacent social market opportunities and sprung into action.

It’s particularly hard to reckon in the shadow of Facebook’s ever-swelling isolation. Once the eager enemy of any social upstart, Facebook finds itself desperately complicated by global politics and antitrust woes in a way that may never strike it down, but have seemed to slow its maneuverability. A startup like Clubhouse may once seemed like a prime acquisition target, but it’s too complicated of a purchase for Facebook to even attempt in 2021, leaving Twitter a potential competitor that could scale to full size on its own.

Twitter is a much smaller company than Facebook is, though it’s still plenty big. As the company aims to move beyond the 2020 US election that ate up so much of its attention and expand its ambitions, one of its most pertinent challenges will be reinvigorating a product culture to recognize opportunities and take on rising competitors — though another challenge might be getting its competition to take it seriously in the first place.

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Sila Nanotechnologies raises $590M to fund battery materials factory

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Sila Nanotechnologies, a Silicon Valley battery materials company, has spent years developing technology designed to pack more energy into a cell at a lower cost — an end game that has helped it lock in partnerships with Amperex Technology Limited as well as automakers BMW and Daimler.

Now, Sila Nano, flush with a fresh injection of capital that has pushed its valuation to $3.3 billion, is ready to bring its technology to the masses.

The company, which was founded nearly a decade ago, said Tuesday it has raised $590 million in a Series F funding round led by Coatue with significant participation by funds and accounts advised by T. Rowe Price Associates, Inc. Existing investors 8VC, Bessemer Venture Partners, Canada Pension Plan Investment Board, and Sutter Hill Ventures also participated in the round.

Sila Nano plans to use the funds to hire another 100 people this year and begin to buildout a factory in North America capable of producing 100 gigawatt-hours of silicon-based anode material, which is used in batteries for the smartphone and automotive industries. While the company hasn’t revealed the location of the factory, it does have a timeline. Sila Nano said it plans to start production at the factory in 2024. Materials produced at the plant will be in electric vehicles by 2025, the company said.

“It took eight years and 35,000 iterations to create a new battery chemistry, but that was just step one,” Sila Nano CEO and co-founder Gene Berdichevsky said in a statement. “For any new technology to make an impact in the real-world, it has to scale, which will cost billions of dollars. We know from our experience building our production lines in Alameda that investing in our next plant today will keep us on track to be powering cars and hundreds of millions of consumer devices by 2025.”

The tech

A lithium-ion battery contains two electrodes. There’s an anode (negative) on one side and a cathode (positive) on the other. Typically, an electrolyte sits in the middle and acts as the courier, moving ions between the electrodes when charging and discharging. Graphite is commonly used as the anode in commercial lithium-ion batteries.

Sila Nano has developed a silicon-based anode that replaces graphite in lithium-ion batteries. The critical detail is that the material was designed to take the place of graphite in without needing to change the battery manufacturing process or equipment.

Sila Nano has been focused on silicon anode because the material can store a lot more lithium ions. Using a material that lets you pack in more lithium ions would theoretically allow you to increase the energy density — or the amount of energy that can be stored in a battery per its volume — of the cell. The upshot would be a cheaper battery that contains more energy in the same space.

The opportunity

It’s a compelling product for automakers attempting to bring more electric vehicles to market. Nearly every global automaker has announced plans or is already producing a new batch of all-electric and plug-in electric vehicles, including Ford, GM, Daimler, BMW, Hyundai and Kia. Tesla continues to ramp up production of its Model 3 and Model Y vehicles as a string of newcomers like Rivian prepare to bring their own EVs to market.

In short: the demand of batteries is climbing; and automakers are looking for the next-generation tech that will give them a competitive edge.

Battery production sat at about 20 GWh per year in 2010. Sila Nano expects it to jump to 2,000 GWh per year by 2030 and 30,000 GWh per year by 2050.

Sila Nano started building the first production lines for its battery materials in 2018. That first line is capable of producing the material to supply the equivalent of 50 megawatts of lithium-ion batteries.

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Daily Crunch: Calendly valued at $3B

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A popular scheduling startup raises a big funding round, Twitter makes a newsletter acquisition and Beyond Meat teams up with PepsiCo. This is your Daily Crunch for January 26, 2021.

The big story: Calendly valued at $3B

Calendly, which helps users schedule and confirm meeting times, has raised $350 million from OpenView Venture Partners and Iconiq.

Until now, the Atlanta-based startup had only raised $550K, but the company says it has 10 million monthly users, with $70 million in subscription revenue last year.

“Calendly has a vision increasingly to be a central part of the meeting life cycle,” said OpenView’s Blake Bartlett.

The tech giants

Twitter acquires newsletter platform Revue — Twitter is getting into the newsletter business.

TikTok is being used by vape sellers marketing to teens — Sellers are offering flavored disposable vapes, parent-proof “discreet” packaging and no ID checks.

PepsiCo and Beyond Meat launch poorly named joint venture for new plant-based food and drinks — The name? The PLANeT Partnership.

Startups, funding and venture capital

Fast raises $102M as the online checkout wars continue to attract huge investment — The new funding was led by Stripe.

SetSail nabs $26M Series A to rethink sales compensation — SetSail says salespeople should be paid them throughout the sales cycle.

Mealco raises $7M to launch new delivery-centric restaurants — By launching a restaurant with Mealco, chefs don’t sign a lease or pay any other upfront costs.

Advice and analysis from Extra Crunch

Ten VCs say interactivity, regulation and independent creators will reshape digital media in 2021 — We asked about the likelihood of further industry consolidation, whether we’ll see more digital media companies take the SPAC route and, of course, what they’re looking for in their next investment.

The five biggest mistakes I made as a first-time startup founder — Finmark CEO Rami Essaid has some regrets.

Does a $27B or $29B valuation make sense for Databricks? — A look at Databricks’ growth history, economics and scale.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Everything else

President Joe Biden commits to replacing entire federal fleet with electric vehicles — His commitment is tied to a broader campaign promise to create 1 million new jobs in the American auto industry and supply chains.

Meet the early-stage founder community at TC Early Stage 2021 — Early Stage part one focuses on operations and fundraising and takes place on April 1-2, while Early Stage part two focusing on marketing, PR and fundraising and runs July 8-9.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

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